Starting from Magh 1, the limit for cash transactions will be set at NPR 500,000. Nepal Rastra Bank has made this provision in its unified directive issued to banks and financial institutions. Any payment exceeding NPR 500,000 must be made mandatorily through an account payee cheque or directly deposited into the concerned person’s bank account. Cheques issued in the name of any firm, company, institution, or office must also be account payee.
The central bank has clarified that this provision will not create problems in paying salaries and wages to employees and workers involved in priority infrastructure projects such as hydropower, roads, and communication sectors. Similarly, there will be no obstacles in payments related to the supply of goods required for various projects, payment of government revenue, deposit of bail or security amounts, and distribution of pensions through pension camps. The latest arrangement will also not affect the distribution of government relief, grants, and assistance, nor payments made by remittance companies or agents to remittance recipients. Savings and credit cooperatives will be allowed to conduct daily cash transactions with their members.
The government had already decided on Mangsir 15 to limit cash transactions to NPR 500,000. The Ministry of Finance published a notice regarding this provision in the Nepal Gazette on Thursday.
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